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www.pluralsight.com
PAYMENTS PRODUCT MANAGER, PLURALSIGHT AUTHOR
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Review the role of the Product Manager Complete an overview of strategy frameworks
- PESTEL Analysis
- Industry Dynamics Scorecard
Managing Strategy and Vision UNDERSTANDING THE EXTERNAL BUSINESS - - PowerPoint PPT Presentation
Managing Strategy and Vision UNDERSTANDING THE EXTERNAL BUSINESS - - PowerPoint PPT Presentation
Managing Strategy and Vision UNDERSTANDING THE EXTERNAL BUSINESS ENVIRONMENT Curtis Webb PAYMENTS PRODUCT MANAGER, PLURALSIGHT AUTHOR www.pluralsight.com t h s Review the role of the Product Manager Overview Complete an overview of
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PRODUCT MANAGER leads cross-functional teams to optimize the product’s position and financial returns consistent with business
- bjectives.
- General manager responsible for every
aspect of the product.
- Proactive team member interacting with
business, technology, and customers to deliver value.
- Mini-CEO
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Typical Time Spent by Product Managers
De Defini ning ng pr produc
- duct
strategy strategy 18 18% Col Collabor aborat ating ng wi with technical and des design gn funct unctions
- ns
15 15% De Defini ning ng pr produc
- duct
re require irements ts 14 14% Col Collabor aborat ating ng wi with other fu functio ctions 12 12% Engagi Engaging ng with h custom customer ers s and and par partner ners 12 12% Pl Planni anning ng and and ma maintaining the pr product
- duct roadm
- admap
ap 10 10% Revi Reviewi ewing ng met etrics cs 8% 8% Res Resear earchi ching ng ma market and com competi petiti tion
- n
4% 4% Coachi Coaching, ng, team eam ma manageme ment, recruiting 5% 5% Pr Prici cing ng and and and and packagi packaging ng 2% 2% Source: McKinsey Product Management Index, 2018.
18%
time spent defining product strategy
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Qualitative framework used to analyze and monitor macro-environmental factors: Political Economical Social Technological Environmental Legal
PESTEL Analysis
Defining Product Strategy
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PESTEL Overview
Political
How and to what degree a government intervenes in the economy
Economical
Economic factors that impact how business is done and profitability
Social
Socio-cultural shared beliefs and attitudes of the population
Technological
Tech landscape changes that impact how products are marketed
Legal
Health and safety, equal opportunities, consumer rights and laws, etc.
Environmental
Scarcity of raw materials, pollution targets, and sustainability factors
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Quantitative framework used to track and score facts to identify if the industry has: Potential show-stoppers Significant challenges Data conducive to your product Conditions ideal for venture success
Industry Dynamics Scorecard
Defining Product Strategy
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Industry Dynamics Scorecard Overview
Total Score Facts and Data Score (1-10)
Size and Growth Rate Favorable Trends Competitive Intensity Presence of Winners Level of startup/M&A Tech/Innovation Trends Customer Channels Low barriers to entry
Ke Key: 1 Show-stopper 3 Significant challenge 5 Neutral 7 Positive 10 Ideal
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Demo
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Practice strategy frameworks Qualitative and quantitative discussion with business leaders Analyze an existing or a prospective industry Focus on one or two things
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PESTEL Example: Payments Industry
Political Economical Social Technological
Political changes and instability in markets may impact business Market volatility can increase or reduce consumer spending confidence Global movement toward empowering unbanked and underbanked Digital payment adoption enabling growth Data privacy, transfer and storage Reducing footprint with environmentally friendly rules and tech
Legal Environmental
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Scorecard Example: Payments Industry
Total Score Facts and Data Score (1-10)
Size and Growth Rate Favorable Trends Competitive Intensity Presence of Winners Level of startup/M&A Tech/Innovation Trends Customer Channels Low barriers to entry
Ke Key: 1-10 10 1 Show-stopper 3 Significant challenge 5 Neutral 7 Positive 10 Ideal
- Banks issuing credit/debit products
- Increase in online spending
- Less cash being used
- Millennials starting to spend $
- Card brand flips are common
- Mature industry competing on price
- Saturated market with winners
- Start-ups compete with large legacies
- Many start-ups serving few customers
- Networks buying start-ups
- Huge focus on future of payments
- Faster payments @ premium revenue
- Merchants + corporates + cardholders
- Online/mobile apps/tablet
- High tech build and compliance costs
- Bank grade security investments
8 7 5 3 5 10 9 2 49
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Product managers are mini-CEOs that spend most of their time defining product strategy. Strategy framework assessments like PESTEL and the Industry Dynamics Scorecard can help analyze the external business environment. These tools can be used to provide a qualitative and quantitative resource to understand your existing industry or decide which industry to enter.
Summary
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